1. Planning Metrics & Implementation Control
MKT 460 (Strategic Marketing)
Taufique Hossain

2. Tools for measuring marketing progress
Metrics: Used to establish measures for specific performance-related outcomes and
activities and then track results against measures
Forecasts: Used to predict future sales and costs as checkpoints for measuring progress
Budgets: Used to allocate funding across programs in specified periods and then track expenditures during implementation
Schedules: Used to plan and coordinate the timing of tasks and programs

3. Planning metrics Share of hearts, minds and markets
Product & portfolio management
Customer profitability
Channel management & sales force
Pricing strategy
Promotions
Advertising media and web metrics
Marketing & finance
Margins & profits
Sales force
The trade
Advertising agency
Logistics
Customers and market research
Finance
Operations

4. Planning metrics
Marketing dashboard: A computerized, graphical or digital presentation that helps management track important metrics overtime and spot deviation from the plan.

5. Identifying metrics Marketing: Financial: Societal:
To acquire new customers: Measure number or percentage of new customers acquired by month, quarter, and year.
To retain current customers: Measure number or percentage of customers who continue purchasing during a set period.
To increase market share: Measure dollar or unit sales divided by total industry sales during a set period.
Financial:
To improve profitability: Measure gross or net margin for a set period by product, line, channel, marketing program, or customer.
To reach breakeven: Measure the number of weeks or months until a product’s revenue equals and begins to exceed costs.
Societal:
To make products more environmentally friendly: Measure the proportion of each products parts that are recyclable or have been recycled during a set period.
To build awareness of a social issue: Research awareness among the target audience after the program or a set period.

6. Identifying metrics
Customer becomes aware of an offering: Measure customer awareness of offering and competing offers by segment.
Customer learns more about an offering: Measure number of information packets or catalogs requested, number of hits on Web site or YouTube video, number of people who visit store or showroom
Customer has a positive attitude toward the offering: Measure customer attitudes towards the offer and competing offers, by segment; feedback from hotlines, blogs, letters, s, channel, etc.
Customer tries the offering: Measure number of people who receive free samples or redeem coupons for trials.
Customer buys the offering: Measure sales by transaction. segment. channel, payment method; conversion from trials and information requests.
Customer is satisfied: Measure customer satisfaction by offering and by segment; satisfaction feedback from hotlines, blogs. letters. meets. s, channel, etc.
Customer becomes loyal: Measure customer retention and churn; size and frequency of repeat purchases; utilization of frequent buyer program

7. Using metrics Expected outcomes Historical results
Competitive or industry outcomes
Environmental influences
Return on investment in marketing (ROMI) = Net profit attributed to marketing activity/Marketing investment

8. Forecasting sales & costs
Types of forecasts:
Forecast of market and segment sales
Forecasts of company product sales
Forecast of cost of sales
Forecast of sales and costs by channel

9. Sources and tools for forecasting data
Regression analysis
Econometrics model
Time series method
Smoothing and decomposition
Judgmental method
Sales force estimates
Executive opinion
Delphi method
Online prediction markets

10. Sources and tools for forecasting data
Sales force estimates: Composite projection based on estimates made by sales personnel convenient but accuracy depends on instincts, experience, and objectivity of salespeople.
Executive opinion: Composite projection based on estimates made by managers; convenient but accuracy depends on instincts, experience, and objectivity of managers
Delphi method: Composite projection based on successive rounds of input from outside experts, who ultimately come to consensus on estimates; time consuming but sometimes helpful when forecasting new-product or new-market sales.
Online prediction market: Composite projection based on combined judgment of employees or stakeholders who indicate their confidence in certain marketing predictions through online “trading” in a mock stock market; efficient but may involve bias toward longer- term predictions.

11. Budgeting Affordable budgeting Percentage of sales budgeting
Competitive parity budgeting
Objective and task budgeting method

12. Budgets within marketing budget
Budgeting for each marketing-mix program
Budget for each brand, segment or market
Budgets for each region of geographic division
Budgets for each division or product manager
Budget summarizing overall marketing

13. Controlling marketing plan implementation
Annual plan control
Profitability control
Productivity control
Strategic control

14. Planning metrics and implementing control
Scheduling marketing Plan Programs
Applying Control
Preparing contingency plans